Here's two new stories in the Indian financial press about the fraudulent loan saga involving the Singh brothers and their relative, Gurinder Singh Dhillon, the guru of Radha Soami Satsang Beas.
It sure looks like the guru wasn't being truthful when he reportedly said that he has never received money from anyone other than his parents, and also when he filed an affidavit saying he didn't owe money to Malvinder Singh. But I'm sure there will be more twists and turns in this seemingly never-ending scandal.
If my calculation is correct, 1,743 crore rupees equals about $200 million in U.S. dollars. That's how much Malvinder says he is owed by the Dhillon family.
First, here's an Economic Times story.
NEW DELHI: Former promoter of Ranbaxy, Malvinder Singh has filed an affidavit in the Delhi High Court detailing transaction details of loans he gave to Gurinder Singh Dhillon and his family to back his complaint against the spiritual guru.
The undertrial businessman had earlier filed a complaint against Dhillon, head of Radha Soami Satsang Beas, among others, with Delhi Police’s Economic Offences Wing (EOW) for allegedly siphoning off proceeds from the sale of Ranbaxy Laboratories.
In an affidavit filed in the Delhi High Court last week, Singh submitted that Dhillon and his family members owed Rs 1,472.72 crore along with interest to him.
Between 2006 and 2010, more than Rs 500 crore were directly transferred from his accounts to Dhillon and his family members, Singh claimed in the affidavit.
Further, approximately Rs 488.83 crore were advanced as loans to Dhillon and his family members between 2011 and 2016 through companies of Best group, he claimed.
Best group – which includes Best Healthcare, Modland Wears, Fern Healthcare, Devera Developers, Greenline Buildwell, and Adept Lifespace – was not owned by Singh at the time of advancement of loans. Earlier Malvinder had in a complaint filed with EOW alleged that his brother had fraudulently acquired Best group companies under RHC holding, which was Singh brothers holding company.
“The monies received from the Best group was camouflaged by Dhillon and his family members to appear as if they were clearing their debt towards answering respondent and its subsidiaries with a view to window dress and attempt to show that there is no amount receivable from Dhillon and members of his family to the answering respondent,” SINGH’S affidavit said.
ET has seen the copy of the affidavit.
Singh has attached supporting bank statements showing transactions history of the loans transferred to the Dhillon family, and claimed Rs 1,472.72 crore remained outstanding towards Best group as on March 2020.
Earlier Dhillon had filed an affidavit claiming that he did not owe money to Singh.
Singh has also accused his brother Shivinder Singh, family members of Dhillon and his former associates Sunil and Sanjay Godhwani of conspiring to misappropriate funds.
The Singh brothers are at present in judicial custody and are also facing contempt proceedings in the Supreme Court of India.
Here's a Business Today story on the same subject.
Ranbaxy case: Malvinder Singh submits 'proof' of Rs 1,473 cr Dhillon family owes him
Former Ranbaxy promoter Malvinder Singh, in an affidavit filed in the Delhi High Court, has submitted proofs of loans worth Rs 1,472.72 crore owed to him by Gurinder Singh Dhillon, head of Radha Soami Satsang Beas, and his family members.
The development comes days after the undertrial businessman filed a complaint against Dhillon and others with the Delhi Police's Economic Offences Wing. He alleged Dhillon and others siphoned off funds from the proceeds of the sale of Ranbaxy Laboratories, and that Dhillon owed Rs 1,472.72 crore along with interest to Malvinder Singh.
The affidavit filed by Singh says huge sums of monies -- over Rs 500 crore -- were transferred from the accounts of Malvinder Singh to Gurinder Singh Dhillon and his family members between 2006 and 2010.
Additionally, between 2011-2016, around Rs 488.83 crore were advanced as loans to Gurinder Singh Dhillon and family members from the companies of 'Best Group', which at the time of advancement of these loans were not subsidiaries of Malvinder Singh.
The Best Group comprises Best Healthcare Private Limited, Modland Wears Private Limited (JD16), Fern Healthcare Private Limited (JD17), Devera Developers Private Limited, Greenline Buildwell Private Limited and Adept Lifespace Private Limited.
The affidavit alleges around December 2017, Shivinder Mohan Singh 'misused' his position, while concealing the precarious financial health of the companies under the Best Group. It alleges that Shivinder initiated the process to acquire these companies through Malvinder without any due diligence.
"Shivinder Singh misrepresented that this takeover is profitable. However, in October-November 2018, it was pointed out by the auditors that these companies are in fact debt-ridden. These companies had extended financial facilities to either Gurinder Dhillon, his family members, his close associates or the companies owned, controlled or managed by the Dhillon family," the affidavit alleged.
Dhillon and his family members received monies not only from Malvinder and his subsidiaries between 2006 and 2010 but also from companies of the Best Group (2011-2016), which weren't his subsidiaries when the loans were given and were acquired in December 2017.
"The monies received from the Best Group was camouflaged by Dhillon and his family members to appear as if they were clearing their direct debt towards Malvinder and his subsidiaries to window dress that there is no amount receivable from Dhillon and members of his family directly to Malvinder," the affidavit says.
However, the monies advanced by the Best Group directly to the Dhillon family i.e. a sum of Rs 1,472.72, crore along with interest is still outstanding towards the companies of the Best Group, Malvinder says.
He says Dhillon had earlier attempted to mislead the court by confusing the two sets of loans advanced to him and his families. "The same are to be paid back, along with applicable interest at the rate of 14.75 per cent quarterly compounding," he says, adding that this interest rate was mutually accepted.
Response from Malvinder came after Dhillon via an affidavit claimed he owed no money to Malvinder. Malvinder also alleged that Shivinder Singh and former associates Sunil and Sanjay Godhwani also conspired to misappropriate funds.
Both Malvinder and Shivinder are in police custody in a fraud case involving their former company Ranbaxy. The Singh brothers sold Ranbaxy to Daiichi Sankyo in 2008. In 2013, Daiichi paid $500 million as felony charges in the US for selling adulterated medicines, following which it filed an arbitration case against Singh brothers.